Propylene Supply Restored! Manali Petrochemicals to Gradually Restart Production of Propylene Oxide and Other Products

April 20, 2026 – Manali Petrochemicals announced that its Plant No. 1 in Manali, Chennai, is set to restart operations.

According to documents filed by Manali Petrochemicals with the stock exchange, the Department of Pharmaceuticals under India's Ministry of Chemicals and Fertilizers has allocated a fixed daily quantity of propylene to Manali Petrochemicals, which will be supplied by Chennai Petroleum Corporation Limited (CPCL).

Manali Petrochemicals added that in light of the propylene quota allocation and the expected resumption of feedstock supply from CPCL under a revised operational memorandum, the company will initiate the restart process for its Plant No. 1 in Manali, Chennai.

Manali Petrochemicals expects operations at Plant No. 1 to resume in phases after receiving propylene supply from CPCL.

Previously, on March 11, 2026, Manali Petrochemicals announced a temporary shutdown of its Plant No. 1 due to a sudden interruption of propylene supply from CPCL. According to the company's filing, the shutdown became effective from March 12, 2026.

The propylene supply disruption stemmed from a revised directive issued by India's Ministry of Petroleum and Natural Gas (MoPNG) on March 9, 2026. The directive required that all crude oil processed at CPCL's refinery be exclusively used for producing liquefied petroleum gas (LPG) to ensure national energy security and domestic fuel supply.

MoPNG's directive was issued in response to severe disruptions in international crude oil and petrochemical product supply chains caused by ongoing geopolitical conflicts in the Middle East, prompting government intervention to safeguard energy supplies.

Manali Petrochemicals produces propylene oxide (PO) and related petrochemical products. Propylene is its sole and indispensable raw material, sourced exclusively from CPCL.

CPCL stated that with the propylene quota allocated by the Indian government, the force majeure situation that previously led to the temporary shutdown of Plant No. 1 has been appropriately resolved.